OAR 177-040-0026: Retailer Compensation — Video Lottery Games

(1) General: The compensation the Lottery shall pay a retailer for the sale of Video Lottery game shares is calculated on a percentage of dollars played during a business year. “Dollars played” means the amount wagered on Video Lottery games at a retailer’s premises. (2) Compensation When Dollars Played Exceeds Tier Threshold: During the course of a business year, when a Video Lottery retailer’s dollars played exceeds the threshold of a tier applicable to the retailer under this rule, the Video Lottery compensation rate shall remain unchanged for the remainder of the business day on which the threshold is exceeded. The compensation rate for that tier, as set forth in this rule shall apply at the start of the next business day. For example, under section (4) of this rule on Wednesday the dollars played reaches $2,250,001, the retailer is compensated at 2.20 percent of the dollars played for the remainder of the business day. At 5:00 a.m. on the next day, Thursday, which is the start of the next business day, the compensation rate is reduced to 1.75 percent of dollars played. (3) Applicability: The compensation rates for the sale of Video Lottery game shares set forth in this rule apply to compensation for the sale of shares on all Video Lottery game terminals at all Video Lottery retailers effective as of the start of the business day beginning June 28, 2020. (4) Compensation: 4-Tier Compensation: Dollars Played per Year – Compensation/Percent of Dollars Played: (a) Up to $2,250,000 – 2.20% (b) $2,250,000.01 to 4,000,000 – 1.75% (c) $4,000,000.01 to 6,500,000 – 1.50% (d) $6,500,000.01 and up – 1.34%